Russian Steel: challenges of time

In 2015, a negative dynamics of the economic development of Russia under the influence of structural and external political factors is projected. If the national economy slows down, investment in fixed capital decreases, the metal consumption also falls. According to Russian Steel, this year the steel consumption in Russia may fall by 15%. Among the most significant factors, causing the decline in the steel consumption, we can note a reduction in investment activity in the country, decrease in the demand from end consumers, increase in the cost of imported parts and, as a consequence, a significant increase in the cost of products for the automotive and engineering industries, the increase in vacancy space for non-residential premises and unsold residential space.

This was said by chairman of Russian Steel Yuri Mishin. In his opinion, in the short term the economic situation will remain uncertain. In conditions of the decline in the demand on the domestic market, in 2016 the metallurgists will have the following alternatives: to increase the export or to reduce the capacity loading. At the same time, the trend of increasing exports faces the increased protectionism on the steel market, which creates additional problems.